Bitcoins Outlook Ahead of Trumps Liberation Day: QCP Capital Weighs In on Market Sentiments

The introduction of overly aggressive tariffs by U.S. President Donald Trump could heighten negative market sentiments and trigger further declines in risk assets, as warned by QCP Capital.

Analysts pointed out that April 2 is marked as «Donald Trump’s Liberation Day,» on which the politician has promised to unveil an extensive package of «reciprocal tariffs.»

Bitcoin, Ethereum, and the S&P 500 have recorded their worst quarterly performance in three years. Since March 29, the cryptocurrency market has lost over $160 billion in capitalization.

With consumer confidence at a 12-year low and stock markets already shaken by a 4-5% decline over the past week, it’s an inopportune time to tighten trading conditions.

*“However, political theater often leaves room for adjustment. A more measured implementation of measures than anticipated could provide the markets with a brief respite,”* the specialists suggested.

In options trading, buyers have focused on strikes between $85,000 and $90,000 while selling downside risk (with a strike price of $75,000), reflecting hopes for a more robust beginning to the second quarter.

Experts recalled that historically, April has been a strong month for cryptocurrencies, though they remain cautious in their outlook.

*“The future trajectory is likely to be characterized by sideways movement as investors digest a multitude of macro risks and await a clearer direction,”* the specialists concluded.

As a reminder, Matt Crosby from Bitcoin Magazine Pro has *predictably commented* on a potential resurgence in Bitcoin’s rally, citing a gradual shift in sentiment, steadfast holders, and the «structural strength of the market.»